I was dead set on a Grand Cherokee, but am so glad I went with the Tahoe (older version). I think that the tahoe with the 5.7 liter will get the same mpg's as the 4.7 Jeep, or pretty darn close( the new 5.3's are similar to the older 5.7's). Plus, the bigger engine and hopefully towing package will be beneficial also. The Jeeps aren't really known for being happy with a lot of weight behind them.

The size of the tahoe vs the jeep will probably make a bit of difference when towing. My old '97 does excellent - I could see upgrading to a newer one(tahoe or Sub) someday, but not going to the Jeep ever...unless it is for the second vehicle.

I believe most of the V8 Grands are full time 4wd, which really isn't useful towing.

The Jeeps are fun to drive, for just an "around the town" vehicle. Like I said, I was really close to pulling the trigger on a WJ. They will also pull your boat, but I'd go Tahoe. Also - 3rd row seating gets used all the time in mine.

As an owner of an 01 Grand Cherokee with the 4.7, towing is ok but could be better. Don't expect to rush with a boat in tow. Just cruising around is where it really shines. I'll see 23-25 mpg on the gauge while cruising. That'll go down to 12 while towing. I only have a few minute drive to the launch which is nice. When I do tow for two hours to other lakes I take my time. I've never had any transmission trouble overheating or anything. I just slow down to 55-60 mph and take it real easy on the steeper hills. I love my grand cherokee, it's the 60th anniversary limited edition so it's got all options and I get complements about the ride in it quite often. If you're attentive while driving you'll have no problem towing with the grand cherokee. If you want a vehicle that you can hook up the boat to and just take off without any extra concern go with the Tahoe.

Before we got rear-ended wifey drove a fully-loaded 07 Jeep Grand Cherokee limited with hemi and quadadrive 2 (full-time 4x4 with lock capability). The Jeep was our tow vehicle and towed very well for what it was. I now have a ram 2500 diesel. There is little comparison, but we got to the lake with both. Drive to our lake is 45 minutes with several steep windy canyons. Jeep handled them without a prob and never a lack of power. If you are going to go with the Jeep I would def get the 5.7 hemi. You will lose a lil in mpg, but if you are planning on towing with it you will be happy. We were very happy with the Jeep all around. Good luck, can't go wrong with any of your choices.